Markets Archives - Page 431 of 782

Indonesia and Vietnam Lead Emerging Markets News

In the EM local currency bond space, the Philippines (10-year yield -9 bp), Mexico (-5 bp), and Ukraine (-4 bp) have outperformed this week, while Peru (10-year yield +21 bp), Brazil (+18 bp), and Russia (+11 bp) have underperformed. To put this in better context, the 10-year UST yield fell -4 bp this week to 1.73%.

In the EM FX space, ARS (+2.3% vs. USD), RUB (+0.8% vs. USD), and HUF (+0.3% vs. EUR) have outperformed this week, while BRL (-2.7% vs. USD), MXN (-2.2% vs. USD), and ZAR (-2.1% vs. USD) have underperformed.

Mortgage Rates Fall as Treasury Yields Stay Low

In another sign of slow growth and weak demand, mortgage rates fell to their lowest point this year as Treasury yields fell to almost their lowest rate in history. U.S. Treasuries fell to less than 1.7% during Thursday trading, nearing the all-time low achieved earlier this year of 1.64%.

Japan is not Really an Export-Oriented Economy

The surging yen has been the main feature in the foreign exchange market in recent days, but its advancing streak has been stopped with today’s setback. The greenback traded briefly dipped below JPY107.70 in North America yesterday but has not been below JPY108 today. It is near JPY109 as NY dealers return to their posts.

Australia’s High Housing Costs Heighten Hospitality Headwinds

Watch any tourism or branding campaign for an Australian city, and chances are you’ll see plenty of appealing imagery of amenities in and around the CBD – be it restaurants, nightclubs, parks or galleries. It is a common mantra in urban planning that good “amenity” is valuable to the economy both in its own right, particularly to attract tourism, and for attracting a productive workforce that boosts the economy more generally.

Australia’s Dynamic View of Asia

As the China boom passes into history and Australians are left to rethink their relationship with that vast country, politicians will seek to craft a new ‘Asia’ in the Australian imagination in response to new circumstances. That has, after all, long been the pattern.

Is China Dreaming?

The ‘China Dream’, a signature slogan of President Xi Jinping, has drawn worldwide attention. At a time when the growing assertiveness of China is being linked to the revival of the idea of Sino-centrism, the resurgence of a once ‘humiliated’ nation is being viewed by some countries with much apprehension. However, what exactly is Xi’s vision of the ‘China Dream’?

Federal Reserve Puts Rate Hikes on Hold

The Federal Reserve has fully reversed course, indicating that interest rate increases are likely to come later rather than sooner, as weak economic growth plagues the United States. Recently released Federal Open Market Committee (FOMC) minutes point to the central bank’s hesitance to raise borrowing costs for Americans due to protracted weakness throughout the broad economy.

Zimbabwe Undergoes Cash Crunch as Economy Struggles

Central bank governor John Mangudya urged Zimbabweans to limit cash usage as the nation’s cash shortage grew worse this week, according to New Zimbabwe. Zimbabwe discarded its defunct currency in 2009 in response to hyperinflation, and additional provisions prevented the central bank from printing the Zimbabwe dollar.

Zimbabwe switched to the U.S. dollar as one of its main currencies, but the economy is running out of American dollars. In response to the cash crunch, the government has limited bank withdraws and shut down some ATMs.

GDP Outlook Slashed as Trade Deficit Widens, Job Openings Fall

The Federal Reserve has again cut its growth outlook for the American economy as multiple signs of weakness come from numerous independent reports. The Atlanta Federal Reserve’s GDPNow cut its outlook to 0.4% growth in the first quarter of 2016, the third cut that has seen growth expectations more than halve. That is far below economists’ consensus expectations of 1.9% growth, and is indicative of the GDPNow model’s reliance on real-time data and larger data sets.

Helpful Transport Projects Stuck in Australia’s Slow Lane

Governments should open up their transport project funding decisions to greater scrutiny, including tabling an independent cost-benefit analysis in Parliament, recommends a new report from think-tank the Grattan Institute.